IKEA to Close Seven Shops in China Amid Competition, Weak Demand

IKEA will shutter seven of its signature blue-box furniture stores across China and pivot to smaller outlets, as the Swedish retailer grapples with the country’s prolonged property slump and rising competition from local rivals.

Operations will end at stores in cities including Shanghai, Guangzhou and Tianjin from Feb. 2, the company said in a statement. Over the next two years, it plans to open around a dozen small format stores in Beijing and Shenzhen.